Accrual-basis Cash-basis Transaction Revenue Expense Revenue Expense 1. Receive cash from customers in advance, $60O. 2. Pay utilities bill for the previous month, $150. 3. Pay for insurance one year in advance, $2,000. 4. Pay workers' salaries for the current month, $800. 5. Incur costs for employee salaries in the current month but do not pay, $1,000. 6. Receive cash from customers at the time of service, $1,700. 7. Purchase office supplies on account, $330. 8. Borrow cash from the bank, $4,000. 9. Receive cash from customers for services performed last month, $750. 10. Pay for advertising to appear in the current month, $450.

Accrual-basis Cash-basis Transaction Revenue Expense Revenue Expense 1. Receive cash from customers in advance, $60O. 2. Pay utilities bill for the previous month, $150. 3. Pay for insurance one year in advance, $2,000. 4. Pay workers' salaries for the current month, $800. 5. Incur costs for employee salaries in the current month but do not pay, $1,000. 6. Receive cash from customers at the time of service, $1,700. 7. Purchase office supplies on account, $330. 8. Borrow cash from the bank, $4,000. 9. Receive cash from customers for services performed last month, $750. 10. Pay for advertising to appear in the current month, $450.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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